Revenue bonds -- Requirement to impose rates and charges to cover revenue bonds -- Authority to make agreements and covenants to provide for bond repayment.
Revenue bonds -- Requirement to impose rates and charges to cover revenue bonds -- Authority to make agreements and covenants to provide for bond repayment.
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(1) Subject to Subsection 17D-1-501(2), a special service district intending to issue revenue bonds may, but is not required to, submit to special service district voters for their approval the issuance of the revenue bonds at an election held for that purpose as provided in Title 11, Chapter 14, Local Government Bonding Act.
(2) Each special service district that has issued revenue bonds shall impose rates and charges for the services or commodities it provides fully sufficient, along with other sources of special service district revenues, to carry out all undertakings of the special service district with respect to its revenue bonds.
(3) A special service district that issues revenue bonds may:
(a) agree to pay operation and maintenance expenses of the special service district from the proceeds of the ad valorem taxes that this chapter authorizes the county or municipality that created the special service district to levy; and
(b) for the benefit of bondholders, enter into covenants that:
(i) are permitted by Title 11, Chapter 14, Local Government Bonding Act; and
(ii) provide for other pertinent matters that the governing body considers proper to assure the marketability of the bonds.